Federal "In-Sourcing": New Rules For Inherently Governmental Functions


On March 31, 2010, the Office of Federal Procurement Policy ("OFPP") issued a proposed rule implementing the Federal Activities Inventory Reform Act of 1998 ("FAIR Act"), 31 U.S.C. § 501. See 75 Fed. Reg. 16188. The essential purpose of the FAIR Act is to "provide a process for identifying the functions of the Federal Government that are not inherently governmental functions" and to that end requires all government agencies to conduct inventories of their activities to determine whether they are commercial or "inherently governmental." The FAIR Act defines "inherently governmental function" as "a function that is so intimately related to the public interest as to require performance by Federal Government employees." The proposed policy is intended to implement this broad definition by promulgating a meaningful definition of work which is "inherently governmental" and a policy outlining when work must be reserved for federal employees, i.e., when the functions in question are "inherently governmental."

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Sheppard Mullin Richter & Hampton LLP | Attorney Advertising

Written by:


Sheppard Mullin Richter & Hampton LLP on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.